Conor Lenihan: "AIB, Minister, and Department of Finance Deceived the Public by Billions over Loans Exposure"

In today's Daily Mail there is an interview with Conor Lenihan, in which he says he acted extensively for his brother in meeting with banks representatives during the crisis.

He says, amongst other things ""Some people in the AIB were being deliberately misleading...wanted to create a public deception about the true status of its exposure in terms of property lending. etc. ..I think there were a number of banks you could mention. They were literally out by billions. The minster and key department officials were aware of it, as was the Central Bank. Everybody on the State side knew they were lying in denial or just way out in their estimates."

Lenihan also said that some people at bank executive and board level tried being honest with Government.

AIB so far has received more than €20 billion in public funds and is in a quasi-nationalised state.
Last year it lost a billion, and in the first six months of this year it lost €758 million.

It will be stress tested in the new year as part of the EU ECB stress testing process. It is still carrying an unknown quantity of bad property lending, mortgage and other bad debt.

“ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”— Jean-Paul Sartre

Re: Conor Lenihan: "AIB, Minister, and Department of Finance Deceived the Public by Billions over Loans Exposure"

A reminder that AIB cost us 20 billion. No investigation or charges there though.
I wonder why Conor took care to mention AIB specifically? He couldn't possibly ever have had a personal business relationship with them, I suppose?

Re: Conor Lenihan: "AIB, Minister, and Department of Finance Deceived the Public by Billions over Loans Exposure"

Bank shares were tanking. The Government was taking advice from the AG on how much it could legally hide from the public and was secretly bailing out the banks by ordering the NTMA to put public money into them.

Lenihan was a bullshitter, and mistakenly thought that "confidence" i.e. bullshit would see the system through.

It is credible that Lenihan was wary of being seen meeting the bankers. Intermediaries were used.

The crazy lending that fuelled the property bubble had been fed by FF pro-construction policy, but was also a product of the Euro and German needs for low interest rates post reunification.

Once the bubble was blown up to the fullest extent there was never going to be anything other than a terrible crash landing.

Fianna Fail is more directly responsible for bloating public spending on the basis of development contributions, and failing to reduce it promptly and in a way that provided a social safety net when the source dried up.
A massive debt was built up between 2009 and the General Election and we are paying dearly for it.

“ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”— Jean-Paul Sartre

Re: Conor Lenihan: "AIB, Minister, and Department of Finance Deceived the Public by Billions over Loans Exposure"

Originally Posted by PaddyJoe

A reminder that AIB cost us 20 billion. No investigation or charges there though.
I wonder why Conor took care to mention AIB specifically? He couldn't possibly ever have had a personal business relationship with them, I suppose?

And is still costing us - going on for 2 billion in the last two years, and still with a mountain of dodgy debt on its books.

“ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”— Jean-Paul Sartre

Re: Conor Lenihan: "AIB, Minister, and Department of Finance Deceived the Public by Billions over Loans Exposure"

Interesting to see that Conor was making recommendations on appointments to AIB in 2009.

AILISH O'HORA – 29 OCTOBER 2009JUNIOR minister Conor Lenihan lobbied his older brother, the Finance Minister, to have his friend -- Allied Irish Banks' whistleblower Tony Spollen -- appointed to the board of one of the banks last year.

Documents released under the Freedom of Information Act show that Conor Lenihan wrote to Brian four times over a three-week period recommending a number of individuals before it was publicly known that the appointments would be made.While the Department of Finance refused to name individuals in Freedom of Information correspondence, the Irish Independent can confirm Mr Spollen was one of Conor Lenihan's recommendations.A letter dated October 4 stated: "If there is a panel you might consider this guy. Sensible guy and might be of help."In response to Conor Lenihan's final submission on October 28, the Finance Minister said: "I will be in contact with you again about this matter as soon as possible."DirectorsIt is unclear whether either of the letters refer to Mr Spollen.Earlier this year, the Government appointed 12 directors to the six covered institutions including AIB, Bank of Ireland, Irish Life & Permanent, Anglo Irish Bank, Irish Nationwide and EBS.They include businessmen and politicians Dick Spring, Ray McSharry, Alan Dukes and Declan Collier.Sources said yesterday that while Mr Spollen's credentials as a "top candidate" for the boards of banks could not be questioned, the move did reflect a certain tendency to rely on a small pool of candidates for state board appointments.Minister of State for Integration Mr Lenihan recommended a number of individuals to his brother for the boards of the banks, as did several other ministers.Mr Spollen is a fellow of the Institute of Chartered Accountants in Ireland and a former financial controller and head of internal audit at AIB.He is also a director of Enterprise Ireland and the Dublin Airport Authority.

Re: Conor Lenihan: "AIB, Minister, and Department of Finance Deceived the Public by Billions over Loans Exposure"

INBS must not have had time to meet Conor

IRISH Nationwide Building Society (INBS) wrote a secret letter to the advisers of the then Minister for Finance Brian Lenihan in the weeks after the bank guarantee, dismissing as "unrealistic" their fears that the society would end up costing the taxpayer up to €1.5bn.

It provides more evidence showing that Brian Lenihan, a rookie Minister for Finance, was being given hopelessly optimistic assessments by the Irish banks of the financial tsunami facing him even after the guarantee.

Re: Conor Lenihan: "AIB, Minister, and Department of Finance Deceived the Public by Billions over Loans Exposure"

Originally Posted by C. Flower

In today's Daily Mail there is an interview with Conor Lenihan, in which he says he acted extensively for his brother in meeting with banks representatives during the crisis.

He says, amongst other things ""Some people in the AIB were being deliberately misleading...wanted to create a public deception about the true status of its exposure in terms of property lending. etc. ..I think there were a number of banks you could mention. They were literally out by billions. The minster and key department officials were aware of it, as was the Central Bank. Everybody on the State side knew they were lying in denial or just way out in their estimates."

Lenihan also said that some people at bank executive and board level tried being honest with Government.

AIB so far has received more than €20 billion in public funds and is in a quasi-nationalised state.
Last year it lost a billion, and in the first six months of this year it lost €758 million.

It will be stress tested in the new year as part of the EU ECB stress testing process. It is still carrying an unknown quantity of bad property lending, mortgage and other bad debt.

The AIB still bust, essentially, and going to cost us very likely billions more.